Waste management group Bingo Industries has urged investors to accept a $2.3 billion takeover offer from Macquarie Group, giving two ways to collect a benefit.
Bingo on Tuesday said a committee set up to consider the offer recommended investors accept the bid, from a Macquarie Infrastructure and Real Assets (MIRA) company called Recycle and Resource Operations.
The companies in January revealed the unsolicited approach.
Shareholders can accept $3.45 per share, or opt for a cash and unlisted shares alternative.
The latter consists of $3.30 per share, including $1.32 in cash and the remainder in unlisted shares in Recycle and Resource Operations.
Bingo chief executive Daniel Tartak and non-executive director Ian Malouf, who own 31.53 per cent of shares, said they will take the latter option.
The Bingo board also intends to pay a fully franked special dividend of up to 11.7 cents per share before the takeover begins.
Shareholders are expected to vote on the offer in July.
Court and government approval will also be needed.
MIRA head of Asia Pacific Frank Kwok said MIRA had significant experience investing in and operating waste management concerns, and was keen to grow the Bingo business.
Bingo's first-half net profit was 58 per cent lower than the previous corresponding period to $15.8 million.
There was less construction activity due to the pandemic, and less waste.
Shares in Bingo were higher by 6.41 per cent to $3.40 at 1339 AEST.
Shares in Macquarie were higher by 0.36 per cent to $158.81.